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Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence for France

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  • Daniel, Christophe
  • Sofer, Catherine

Abstract

The theory of compensating differentials predicts a negative relationship between wages and good working conditions, while the theory of segmentation predicts a positive one. Combining the hedonic wage model and the wages-employment collective bargaining model, the authors show the relevance of a further factor: a union power effect. Then they test the validity of this effect with French cross-section data. Empirical results confirm the predictions of the model, that is, the coexistence of a negative relationship between wages and good working conditions for the whole sample (market effect) and a positive relationship in highly unionized sectors (union power effect). Copyright 1998 by University of Chicago Press.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 16 (1998)
Issue (Month): 3 (July)
Pages: 546-75

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Handle: RePEc:ucp:jlabec:v:16:y:1998:i:3:p:546-75

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Cited by:
  1. Carlsson, Mikael & Messina, Julián & Nordström Skans, Oskar, 2011. "Wage Adjustment and Productivity Shocks," IZA Discussion Papers 5719, Institute for the Study of Labor (IZA).
  2. Cristian Bartolucci & Francesco Devicienti, 2012. "Better Workers Move to Better Firms: A Simple Test to Identify Sorting," Carlo Alberto Notebooks 259, Collegio Carlo Alberto.
  3. Philippe Bocquier & Christophe Nordman & Aude Vescovo, 2010. "Employment Vulnerability and Earnings in Urban West Africa," Working Papers DT/2010/05, DIAL (Développement, Institutions et Mondialisation).
  4. Stéphane Bonhomme & Grégory Jolivet, 2005. "The Pervasive Absence of Compensating Differentials," Working Papers 2005-28, Centre de Recherche en Economie et Statistique.
  5. Solé, Meritxell & Diaz-Serrano, Luis & Rodriguez Martinez, Marisol, 2010. "Work, Risk and Health: Differences between Immigrants and Natives in Spain," IZA Discussion Papers 5338, Institute for the Study of Labor (IZA).
  6. Climent Quintana‐Domeque, 2011. "Preferences, Comparative Advantage, and Compensating Wage Differentials for Job Routinization," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(2), pages 207-229, 04.
  7. Nikolaos Georgantzis & Efi Vasileiou, 2012. "Are dangerous jobs paid better? European evidence," Working Papers 2012/18, Economics Department, Universitat Jaume I, Castellón (Spain).
  8. Böckerman, Petri & Ilmakunnas, Pekka, 2007. "Job disamenities, job satisfaction, quit intentions, and actual separations: putting the pieces together," MPRA Paper 3245, University Library of Munich, Germany.
  9. Paul Frijters, 2001. "Unemployment benefits and educational choices," School of Economics and Finance Discussion Papers and Working Papers Series 099a, School of Economics and Finance, Queensland University of Technology.
  10. Ambra Poggi, 2007. "Do Satisfactory Working Conditions Contribute to Explaining Earning Differentials in Italy? A Panel Data Approach," LABOUR, CEIS, vol. 21(4-5), pages 713-733, December.
  11. Fernández, Rosa M. & Nordman, Christophe J., 2009. "Are there pecuniary compensations for working conditions?," Labour Economics, Elsevier, vol. 16(2), pages 194-207, April.

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